12 AB 117
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City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
Fax: (408) 777-3366
TY F
CUPEIQ1NO
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No: I J.
SUBJECT AND ISSUE
Meeting Date: April 4, 2006
Consider adopting Resolution No. _ supporting AB 117 (Cohn) to restore full property tax
TEA funding to the City of Cupertino.
BACKGROUND
Cupertino, Los Altos Hills, Monte Sereno and Saratoga represent the four "low/no tax cities" in
Santa Clara County. In the late 1980's, legislation limited our four jurisdictions to 55% of what
other low/no tax cities in the State received from property tax due to county trial court funding
costs.
The cities hired a consultant in 2005 to pursue County support and passage of the appropriate
legislation to provide Cupertino with its full 7% share. Santa Clara County Board of Supervisors
voted to support the proposal to provide the full TEA percentage of 7% last month and
legislation is now proceeding forward in Assembly Bill 117 .
FISCAL IMPACT
Santa Clara County has estimated that passage of AB 117 will provide approximately $2 million
in property tax revenue to the City of Cupertino for fiscal year 2006/07. Cost sharing
agreements between the City and the County, proposed to obtain the Board of Supervisors
support, are not finalized and expenditures accruing against the $2 million are yet to be
determined.
RECOMMENDA nON
Staff recommends adopting Resolution No. _ supporting AB 117 (Cohn) to restore full
property tax TEA funding to the City of Cupertino.
Submitted by:
Approved for submission:
~oq ClIw-ncl
Director of Administrative Services
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David W. Knapp
City Manager
Printed on Recycled Paper
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RESOLUTION NO 06-063
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CUPERTINO AUTHORIZING SUPPORT OF AB 117 (COHN)
TO RESTORE FULL PROPERTY TAX TEA FUNDING TO THE
CITY OF CUPERTINO
WHEREAS the City of Cupertino received only 55% of its property tax funding due to a
legislative agreement put in place in 1988; and
WHEREAS the City of Cupertino has had to cut back services vital to the community
due to budget shortfalls; and
WHEREAS the City of Cupertino deserves the same level of funding as every other city
in the state of California; and
WHEREAS Assembly bill 117 (Cohn) will restore full property tax TEA funding to the
city of Cupertino;
NOW, THEREFORE, be it resolved that the City of Cupertino does hereby support AB
117 (Cohn),
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 4th day of April 2006 by the following vote:
Vote
Members of the Citv Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
APPROVED:
City Clerk
Mayor, City of Cupertino
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